He added, fiscal prudence will lead to fiscal consolidation and aimed at a sustained growth of 7-8 pct in next three-four years.

The fiscal deficit for the current financial year (2014-15) was seen at 4.1% of GDP and 3.6% for the next financial year (2015-16) and further lower at 3% in FY17.

The Indian rupee extended losses and was trading at Rs 59.92 compared to the previous close of Rs 59.75.

Asian markets ended mixed with Shanghai Composite nearly unchanged, Hang Seng was up 0.2%, and Straits Times was up 0.2%. The Nikkei ended down 0.56% at 15,216.47.

On the personal taxation front, the personal income tax has been hiked to Rs 2,50,000 from Rs 2,00,000 while for senior citizens the tax limit has been hiked to Rs 3,00,000 from Rs 2,50,000.

The Budget has also proposed hike in investment under 80C to Rs 1,50,000 from Rs 1,00,000 and exemption on self occupied property to Rs 2,00,000 from Rs 1,80,000 earlier. The PPF limit has also been hiked to Rs 1,50,000 from Rs 1,00,000 earlier.

Top Sensex losers were TCS followed by auto and private bankers. Tata Motors, M&M, Hero MotoCorp and Bajaj Auto ended down 0.8-4% each.

ITC ended up 0.3%. The budget proposed a hike in excise duty on cigarettes and related products to be hiked by 11-72%.

Realty, Power and Capital Goods indices were the top sectoral gainers on the BSE.

Meanwhile stock specific section was seen following the Budget proposals related to the sectors.

The plan to increase the gas pipeline grid by 15,000 kms also augured well for gas distributors.

Indraprastha Gas ended down 0.6%, Gail India ended up 1.5%.

Bata India ended up 3.9% and Relaxo Footwear ended up 5.5% following the cut in excise duty on footwear to 6%.

Gems and jewellery stocks are trading lower by up to 3% in otherwise firm market after the federal government kept gold import duty unchanged at a record 10% in the budget. P C Jeweller, Tribhovandas Bhimji Zaveri (TBZ), Gitanjali Gems, Titan Company, Shree Ganesh Jewellery House and Tara Jewels ended down 1-3%

In the broader market, the BSE Mid-cap index ended up 0.6% and the Small-cap index gained 0.8%.

Market breadth ended strong with 1,625 gainers and 1,250 losers on the BSE.